State and federal officials had warned the acquisition could increase costs for schools and parks.
RALEIGH — Playground equipment manufacturers PlayPower and BCI Burke have abandoned a proposed merger challenged by North Carolina and other states, ending a transaction regulators alleged would increase costs for schools, parks departments and other buyers.
Attorney General Jeff Jackson announced the development Wednesday. North Carolina had joined the Federal Trade Commission and 11 other states in seeking to block PlayPower’s acquisition of Burke.
The North Carolina Department of Justice said PlayPower withdrew its acquisition plans and the coalition determined that its lawsuit was no longer necessary. California’s attorney general separately confirmed the abandonment Tuesday. NCDOJ announcement, California DOJ announcement
The enforcement action focused on commercial outdoor playground equipment, a market serving public agencies as well as churches and other organizations. Regulators argued that eliminating competition between the companies could put additional pressure on public purchasing budgets.
In announcing the lawsuit, the FTC said five companies, including PlayPower and Burke, controlled 85% to 90% of the U.S. market, according to the complaint. The proposed acquisition would have combined two of those major suppliers.
The agency alleged the transaction would eliminate direct competition on price, service, quality and innovation. It also warned of possible effects on independent sales representatives who sell the companies’ equipment.
PlayPower is owned by private equity firm Platinum Equity. Its existing playground brands include Miracle Recreation Equipment Company, Little Tikes Commercial and Playworld Systems, according to the FTC.
The commission voted 2-0 to authorize staff to seek a permanent injunction. The federal complaint was filed in the U.S. District Court for the Northern District of California. FTC lawsuit announcement
Jackson’s office said both manufacturers have playgrounds throughout North Carolina. It warned that higher equipment prices could lead schools and communities to build fewer playgrounds or postpone upgrades.
The abandonment ends the proposed combination. The competitive harms described by regulators were allegations supporting their challenge; the announcements reviewed do not report a court ruling deciding those allegations. NCDOJ announcement
Editor’s note:
This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.